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Informal self-employment within the non-observed economy of Israel

Author

Listed:
  • Labib Shami
  • Gil Cohen
  • Osnat Akirav
  • Arie Herscovici
  • Limor Yehuda
  • Sagit Barel-Shaked

Abstract

This study estimates the size of the non-observed economy, and the share within it that stems from informal economic activity among the self-employed, using a modified currency demand approach adapted to the Israeli economy. By assessing the demand for currency arising from the economic activity of the self-employed, the extent of informal self-employment is estimated as a percentage of GDP. According to the model, the share of the non-observed economy and informal economic activity among the self-employed has been characterised by a downward trend over the last decade. In 2019, the informal economic activity among the self-employed reached nearly NIS 102 billion, 65% of the size of the non-observed economy. The rest stems from illegal activity, which accounts for about NIS 55 billion.

Suggested Citation

  • Labib Shami & Gil Cohen & Osnat Akirav & Arie Herscovici & Limor Yehuda & Sagit Barel-Shaked, 2024. "Informal self-employment within the non-observed economy of Israel," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 52(2), pages 159-180.
    • Handle: RePEc:ids:ijesbu:v:52:y:2024:i:2:p:159-180
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